The Cyprus Securities and Exchange Commission (CySEC) updated its warning list on Monday, adding a long list of sixteen dubious crypto and forex trading platforms.
The fraudulent platforms investors need to be cautious about are instantcryptoforextrades.com, upshotfinance.biz, global-vesco.ltd, raphaelfxinvestment.com, intlmc.com, cointradefxpro.com, coinstradingbit.com, rfmcorp.co, leadwayfinance.ltd, wficorp.co, maximumfinancetrade.com, forex-earners.org, ifmcorp.co, alphabitfx.org, fasttrade.ltd and expert-earners.com.
According to the Cypriot regulator, all these platforms are illegally using the name and license number of BrokerCreditService (Cyprus) Limited, a holder of Cyprus Investment Firm (CIF) license, without its permission or authorization.
The flagged platforms are offering investment services with digital currencies and foreign exchange instruments. Many are flashing the current high price of Bitcoin to lure in investors with impulse investment decisions.
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The services of many of these platforms range from portfolio management and real estate investments. One of these platforms offers an astronomical hourly return of 50 percent on crypto investments and a daily 190 percent return on Bitcoin mining investments.
Interestingly, several of these dubious platforms are identical in design and services, only with some minor changes in their branding.
More Authority Is Needed
While CySEC only issues a public warning with the names of the dubious investment platforms, other European watchdogs like Italy’s Consob have additional powers of ordering internet companies to block access to the fraudulent platforms. This lack of power encourages fraudsters to use false authorizations of the Cypriot regulator.
Cyprus remains one of the most desired jurisdictions among financial companies to gain a financial license and enter the lucrative European Economic Area (EEA). However, multiple European regulators criticized Cypriot companies for breaching their local regulations.